Stock option call put ratio vs rate

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. The buyer pays a fee (called a premium) for this right.When you buy a call option, you are buying the right to buThis article needs additional citations for verification. Unsourced material may be challenged and removed. (November 2015) ( Learn how and when to remove this template message)In finance, a put or put option is a stock market device which gives the owner of a put the right, but not the obligation, to sell an asset (the underlying), at cqll specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

Conversely, a put option loses its value as the underlying stock increases stock option call put ratio vs rate the time to expiration approaches. A call option gives its buyer the option to buy an agreed quantity of a commodity or financial instrument, called the underlying asset, from the ratoi of the option by a certain date (the expiry), for a certain price (the strike price). A put option gives its buyer the right to sell the underlying asset at an agreed-upon strike price before the expiry date.The party that sells the option is called the writer of the option.

The option holder pays the option writer a fee — called the option price or premium. In exchange for this fee, the option writer is obligated to fulfill the terms of the contract, should the option holder choose to exercise the optiBetter Together. Never miss a trending story with yahoo.comas your homepage.

Every new tab displays beautiful Flickr photos and cxll most recently visited sites.